The list of unreliable investment projects has been expanded by six cases
4 December 2024 09:56
The National Securities and Stock Market Commission has expanded the list of dubious investment projects and pyramid schemes to include six more unreliable investment projects. This was reported by the National Commission, "Komersant Ukrainian" reports.
The list of potentially fraudulent projects has been expanded with the following cases:
– FX WAVE
– VELES Finance
– Nixvolut
– RannForex
– Cinpax
– Billions Investment
The National Securities and Stock Market Commission reminded that investing is especially risky
– through persons whose activities are not regulated in Ukraine in any way;
– persons providing false information about licensed and allegedly official activities in countries with developed financial markets.
A complete list of unreliable investment projects is available on the Commission’s official website in the Investor Protection section. You can also send a request to the Commission by email: [email protected].
In the absence of information about a particular questionable project in the above section, potential investors can independently analyze it for doubtfulness based on the “10 signs of doubtfulness of an investment project”.
10 signs of investment project doubtfulness
These signs will help identify potentially fraudulent projects:
1. A large percentage of guaranteed returns.
Some projects offer a return of 100% or more per annum, while the algorithm for using money and the logic of earnings are extremely unclear.
2. Lack of relevant permits and licenses.
As a rule, the project does not have any official regulatory permits and licenses to carry out activities related to the provision of financial services, asset management, or other capital market services in the country where it raises money. Sometimes investors are provided with “licenses” of foreign dubious organizations or exotic countries.
3. Aggressive marketing.
Most potentially fraudulent projects require aggressive advertising support. As a rule, advertising campaigns are implemented on the Internet. Large-scale, bright, and promising, they are usually based solely on emotional motives rather than rational arguments. A large number of positive reviews on the company’s website, recommendations from well-known bloggers and media personalities, or even a network of related “partner” websites in other jurisdictions should not be reassuring.
4. Lack of a physical office.
The presence of exclusively online communication, the absence of a physical office in the city or country where the project offers services, the absence of identified employees with a professional history who are responsible for managing investors’ funds – this should make you take a closer look at the investment project.
5. Lack of registration in the country of investment.
Contact legal entities and beneficiaries are usually residents of such countries as Seychelles, UAE, British Virgin Islands, St. Vincent and the Grenadines, Republic of Vanuatu, countries with offshore zones, preferential customs or registration conditions.
6. There is no investor accreditation.
Projects are not interested in the investor’s financial capabilities and resources, and are ready to work even with low-income clients, offering them loans on bonded terms. Also, as a rule, there is no verification of the investor’s financial condition or credit history.
7. Suspicious or unverified biographies of managers.
Closed information about the actual project managers, those responsible for legal, financial, and accounting support of the project. Vague and legally unclear job titles of nominal managers who appear in promotional materials. Lack of confirmed professional history of such persons. Public figures who may be presented as project managers of such projects may in fact be hired actors and not be involved in the management process in any way.
8. Lack of signed documents.
According to Ukrainian law, the conclusion of financial contracts requires the personalization of signatories, personal signing of papers, physical availability of documents signed by both parties to the transaction in several copies or signed with an electronic digital signature.
9. Persistent suggestion to involve friends.
An offer to an investor to involve friends, relatives, and acquaintances in investments is a common practice of dubious investment projects.
10. Concealment of ownership.
The absence of any documents that can confirm a person’s ownership of the assets or their share in which the investment is supposed to be made. Lack of systematic reports on operations, activities and results of investor asset management.
